All along, the United States has been committed to bringing theU.S. TreasuriesPitched to overseas countries to distract from the United StatesEconomyof debt pressure. However, recent data suggests that this strategy can be challenging. Holding has changed dramatically in various countries, and Yellen may be increasingly troubled by this. Despite the past, China has always been the largestU.S. TreasuriesHolding countries, but the latest data shows that China is not the only one that continues to sellU.S. Treasuriescountries. Japan and the United Kingdom have also changed their previous strategies and started a massive sell-offU.S. Treasuries。Worryingly, in September of this year, the three overseas countries jointly sold offU.S. TreasuriesThe amount reached $89 billion, which shows a trend towards continued holdings by other countriesU.S. TreasuriesInterest is waning.
The reason for this is that the actions of the Federal Reserve and the US Treasury have a number of effects. First of all, the Fed's constant interest rate hikes bringTreasury bondsThe constant rise in yields makes it possibleU.S. TreasuriesHolding becomes less attractive. Secondly, the scale of the Federal ReserveShrink the balance sheetAction causesU.S. TreasuriesThe collapse has further weakened the willingness of other countries to buy. Finally, the U.S. Treasury continues to issue new onesTreasury bonds, resulting in an increase in the market and a decrease in demand. The combination of these factors has led to a worrying situation that the United States is now facing.
In the past, AmericanBanksYesU.S. TreasuriesOne of the important purchasers. However, in recent yearsU.S. TreasuriesContinuous** in the background,BanksChoose not to buy in bulk anymoreU.S. Treasuries。Famous Silicon ValleyBanksJust because of the large amount of **U.S. Treasuriesleads to losses and bankruptcy, this event makes the otherBanksBe more cautious when allocating assets. In addition,Wall Streetof asset management institutions, such as Vanguard Pilot and BlackRock, are also unlikely to continue large-scale purchases due to the decline in net worth and the redemption of funds by some investorsU.S. Treasuries。As a result, it would have been possible to rely on the purchases of these agencies to shareU.S. TreasuriespressureUnited States**Now you need to find other holders.
In this case, the problem for the U.S. Treasury is that there are not enough foreign buyers to buyU.S. Treasuries。Surprisingly, however, recent data suggests that nearly 70%.U.S. TreasuriesHeld by the average family in the United States. This means that in future crises, it will be American families and not other countries that may end up being harvested. This has put tremendous pressure on Yellen, who fears that American families will bear the brunt of the huge losses if the crisis escalates.
United States**Treasury bondsThe change in holders has indeed put a lot of pressure on the United States. In the past, the U.S. has relied on overseas countries to buyU.S. Treasuriesto spread debt pressure. However, with the globalizationEconomyand changes in the political environment, the buying interest of other countries weakened, and the United States had to look for new holders. And the end result of this situation is that American families become purchasedU.S. Treasuriesmaximum strength.
This outcome could lead to more serious consequences. OnceU.S. TreasuriesWhen the crisis erupts, American families will face huge asset losses andEconomyPressure. For Yellen, this is undoubtedly a huge challenge. She needs to find solutions to ensure the interests of American families andEconomyStable. In addition,United States**There is also a need to seriously address this problem, to find new debt holders and to take steps to reduce debt pressure.
In general,U.S. TreasuriesThe change in holders showsEconomywithFinanceUncertainty in the field. We need to pay more attention to these issues and follow up on changes in relevant policies and measures. At the same time, for individuals, it is also necessary to pay attention to risk control and rational allocation of assets to deal with potential onesEconomyRisks and challenges.